The impact of economic complexity on carbon emissions: evidence from France

Abstract

This paper reanalyzes the determinants of the CO2 emissions in France. For this purpose, it considers the unit root test with two structural breaks and a dynamic ordinary least squares estimation. The paper also considers the effects of the energy consumption and the economic complexity on CO2 emissions. First, it is observed that the EKC hypothesis is valid in France. Second, the positive effect of the energy consumption on CO2 emissions is obtained. Third, it is observed that a higher economic complexity suppresses the level of CO2 emissions in the long run. The findings imply noteworthy environmental policy implications to decrease the level of CO2 emissions in France.